The first area isn't finished in scripting, but the second area just needs some tweaking. You'll see how enemies react to player location and whether or not they've been shot or otherwise injured. Detailing has progressed a little too, but thats not why this video is being posted. Also, I left my ugly blocky models as placeholders. Texture tweaking isn't done either, this is all about the AI. Its not in HDR either, so it doesn't look as good as it will (again, looks aren't the point of this video).
Item System in action: